Research On The Determination Of The Monopolistic Behavior Of Price Squeeze

In the monopoly case of China Telecom and China Unicom,the NDRC had argued that the behavior of them was price discrimination which was questioned by many scholars in the field.Many scholars believed that the behavior of them should be identified as price squeeze.I also believe that the behavior of them should be identified as price squeeze through a detailed analysis in the introduction.Price squeeze exists not only in the telecommunications industry,but also in the industries where oligopoly companies are involved.The phenomenon of price squeeze has become very common.However,relevant theories and legal norms about price squeeze are seriously lacking and even blank in China.Law enforcers,vertically integrated firms,competitors of vertically integrated firms in the downstream markets are still not getting a definitive standard of price squeeze.In this condition,because of the lack of a clear legal precedent,law enforcement can not response the business that may be involved in the price squeeze and some companies even through the law loophole and their own cost advantage to exclude competitors,while competitors in the downstream market then be expelled and suffer losses due to the lack of legal support.Their rights are violated but the law can not provide relief.This article takes the monopoly case of China Telecom and China Unicom as the entrance,analyzes the irrationality of identifying the behavior of China Telecom and China Unicom as price discrimination,the rationality of identifying the behavior of China Telecom and China Unicom as price squeeze and then discusses the related issues of the regulation of price squeeze.Article gets conclusion that anti-monopoly regulation of price squeeze is necessary due to the independence of the price squeeze,the need for regulation of the industry where price squeeze exists and the imperfect legal system.On this basis,the author discusses the criteria for determining price squeeze from the main conditions,market conditions,behavior conditions,result conditions to exemption conditions.In terms of main conditions,it is required to be a vertically integrated enterprise;In terms of market conditions,it is required to have a dominant market position in the upstream market,and in the downstream market,its input products to downstream market competitors must be "Necessary input" for downstream market competitors;In terms of behavior,it is required to raise the wholesale price,reduce the retail price,or simultaneously implement the expression mode of raising the wholesale price to reduce the retail price,and use its dominant power in the upstream market to influence the market behavior of competitors in the downstream market;In the result standard conditions,it is required to draw a conclusion that the profit is negative by using comprehensively the transfer price test method and the equivalent efficiency competitor test method;On the exemption condition,it is required to provide evidence to overturn the four conditions for price squeeze recognition or its behavior can be obviously Increase total social welfare or other reasonable defense reasons.